AbCap Expects Big Redemptions, Posts Loss

Sep 30 2008 | 9:26am ET

Troubled hedge fund firm Absolute Capital Management Holdings will see more investors than expected head for the door, it said today.

The Swiss-based firm, which is listed on London’s Alternative Investment Market, posted a €1.2 million loss for the first half, and said it would not recommend a dividend. The firm’s assets under management at the end of June were just US$884 million, down from US$3.25 billion a year ago, due to redemptions and poor performance as well as the demerger of its emerging markets credit division, Argo Group.

In July, AbCap Chairman Jonathan Treacher said he expected as much as €500 million in redemptions.

“While the performance of certain of our funds’ A class portfolios in the first six months has been encouraging, looking ahead, the group expects to have substantial redemptions from its funds at the end of the lock-up periods,” the firm said, due in part to the liquidation of its Absolute Activist Value Fund. It added that it would continue to monitor the viability of its other funds.

Last year, AbCap was rocked by the abrupt departure of co-founder Florian Homm and the revelation that Homm had put as much as a quarter of AbCap’s equity fund’s assets into highly-illiquid pink sheets. The firm then suspended redemptions, putting the illiquid assets into side pockets.


In Depth

The Benefits Of Private Debt Investing

May 7 2015 | 10:43am ET

Jeffrey Haas is chief operating officer of Old Hill Partners Inc., an SEC-registered...

Lifestyle

Yale Receives $150 Million Gift from Blackstone’s Schwarzman

May 12 2015 | 12:10am ET

Yale University announced it has received a $150 million gift from Blackstone Group...

Guest Contributor

How To Generate 6% Yield In A Volatile World

May 22 2015 | 6:41am ET

Private credit comes in many different flavors, all with the common themes of over...

 

Editor's Note